The Malaysian Securities Commission (SC) has issued a statement regarding the operations of the Chinese cryptocurrency exchange Huobi in the country.
According to the statement, the crypto exchange is now on the list to warn investors about the risks, as the company operates the exchange without official registration. The commission said that any operations that carry out or offer activities in the domestic market require its approval. Those not granted such approval are considered non-registered organizations. Accordingly, investors are strongly advised not to invest in transactions organized by such companies.
The regulator recalled that any investor who takes such a risk must understand that in case of loss of funds, he will not be able to receive proper legal support.
In other jurisdictions, the cryptocurrency exchange is doing better. In early August, Huobi announced that it had received permission to work in Australia. Local regulators have registered the site as a service provider for the exchange of cryptocurrencies.
Malaysian crypto investors reacted to SC’s tweet by stating that it is now easier for them to switch crypto exchanges than to continue using Huobi’s services. Representatives of the crypto exchange have already stated that they are negotiating with the regulatory authorities of Malaysia.
As a reminder, Huobi previously announced that it will stop providing options margin trading and ETP services for New Zealand users starting August 23, citing local compliance policies.
Source: Bits
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